The Central Bank of Nigeria (CBN) has threatened to penalise deposit money banks (DMBs) for rejecting obsolete and tiny denominations of US dollars. 

In a circular sent by the Ag. Director, Currency Operations Department, CBN, Mr. Mohammed Solaja, the central bank stated that its market intelligence had indicated the continuous rejection of the impacted dollar notes, which it termed unacceptable.

According to the CBN, its previous circular number COD/DIR/INT/001//002, dated April 9, 2021, remained in effect, and its provisions would be implemented for any bank or authorised foreign dealer who violated the standards.

The bank, in a new circular dated June 27, 2024, which was obtained yesterday, asked that all parties follow its orders.

It said that all DMBs and authorised foreign exchange dealers must accept old series and small denominations of dollars brought by consumers for deposit.

It added, “The Central Bank of Nigeria will not hesitate to sanction any DMB or authorised foreign exchange dealer who refuses to accept old series or lower denominations of US Dollar bills from their customers.

“In addition, all authorised foreign exchange dealers are advised to desist from defacing or stamping US banknotes, as such notes always fail authentication tests during processing or sorting.”